Can a business owner collect unemployment benefits in Washington ESD?

I was set up as an LLC and did pay myself regular wages with all the proper tax withholdings. Does that make a difference?

Yes, that could help your case. Washington ESD looks at whether you had wages reported under your SSN with unemployment taxes paid.

How long did the appeal process take? I'm worried about waiting months without any income.

About 6 weeks total, but it was worth it. I got backpay for the whole period once approved.

Did you have to provide specific documentation to prove you were an employee rather than just the owner?

Yes to all three points. The business failed because my main client contract ended unexpectedly. Should I mention that in my application?

Absolutely mention the client contract ending. That shows it wasn't a voluntary closure but due to economic circumstances.

Thanks, I'll check that out. I've been trying to call Washington ESD for days but keep getting busy signals.

How much does that service cost? I'm already strapped for cash.

It's reasonable considering the time it saves, and they only charge if they successfully connect you to an agent.

I get the frustration but the rules exist to prevent abuse. Some business owners might try to game the system.

Fair point, but legitimate cases shouldn't be punished for potential bad actors.

IT consulting. I had one major client that represented about 80% of my revenue and they suddenly cancelled their contract.

That sucks. At least IT consulting shows you were providing services to external clients, not just paying yourself from business profits.

I kept detailed records thankfully. Should I also include my business registration documents?

Yes, and your Articles of Incorporation if you have them. Anything that shows you were a legitimate employee of the business.

Don't forget about your unemployment tax payments. Those quarterly reports will be crucial evidence.

That's encouraging! How long did it take to get your first payment?

About 3 weeks from filing to first payment. No adjudication delays or anything.

You were lucky. Mine took forever because they couldn't decide if I was really an employee.

I'm definitely looking for regular employment now, not starting another business anytime soon.

Good, make sure to emphasize that in your work search activities. They want to see you're genuinely seeking traditional employment.

No, it was just me. Does that hurt my chances?

Not necessarily, but having other employees would show you ran a legitimate business operation rather than just freelancing under an LLC.

Good point. I don't want it to sound like a voluntary decision when it really wasn't.

Exactly. Frame it as an involuntary separation due to economic factors beyond your control.

How do I know if I should appeal vs. just accepting the denial?

If you legitimately paid wages and unemployment taxes, you should definitely appeal. The worst they can do is uphold the denial.

The appeal process is actually pretty straightforward, just time consuming.

Did they help you understand the specific requirements for business owner claims?

Yes, the agent walked me through exactly what made me eligible vs. ineligible. Saved me a lot of confusion.

True, nothing to lose by trying. I'll get my paperwork together and file this week.

Make sure to file ASAP. There's a waiting period and benefits are calculated from when you file, not when you became unemployed.

I didn't have significant business debt, but I imagine that would actually support your case that the closure wasn't voluntary.

Business debt might actually help prove the closure was due to economic necessity rather than choice.

It's frustrating but I understand why they're careful. Too many people would try to abuse it otherwise.

I get that, but there should be clearer guidelines so legitimate claims don't get stuck in limbo.

That's reassuring. Hopefully Washington ESD has gotten better at recognizing legitimate business failures.

Yeah, I think they've seen enough legitimate cases that they're less suspicious now.

Will do! I'll update this thread once I hear back from Washington ESD.

Yes please update us. I might be in a similar situation soon with my own business struggling.

I'll definitely share what I learn. Hopefully it helps others in similar situations.